December 5, 2016 / 7:51 AM / 2 years ago

Italian banks seen opening 5-6 pct lower: trader

LONDON, Dec 5 (Reuters) - Italian banks are seen down 5 to 6 percent on Monday, according to traders, as potential political uncertainty in the aftermath of Prime Minister Matteo Renzi’s resignation following a crushing defeat in a constitutional referendum clouds the outlook for a clean-up of bad debts.

Traders also saw European banks down 2-3 percent.

In a note to clients, Morgan Stanley said state aid at Banca Monte dei Paschi looked increasingly likely adding that the “No” vote made it more difficult for Italy’s third-largest bank to find an anchor investor.

Italian banks are down nearly 50 percent so far this year. (Reporting by Atul Prakash, Editing by Vikram Subhedar)

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